Exchange rate regulation, the behavior of exchange rates, and macroeconomic stability in Brazil

Detalhes bibliográficos
Autor(a) principal: Souza,Francisco Eduardo Pires de
Data de Publicação: 2011
Outros Autores: Carvalho,Fernando J. Cardim de
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista de Economia Política
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572011000400004
Resumo: In the last two decades an entirely new set of rules governing the foreign exchange transactions was established in Brazil, substituting for the framework inherited from the 1930s. Foreign exchange controls were dismantled and a floating exchange rate regime replaced different forms of peg. In this paper we argue that although successful by comparison to previous experiences, the current arrangement has important flaws that should be addressed. We discuss how it first led to high volatility and extremely high interest rates, which, when overcome, gave way to a long lasting appreciation of the real exchange rate with adverse consequences to industry.
id EDITORA_34-1_0ba084899fe4f4ac53992cd66ed31035
oai_identifier_str oai:scielo:S0101-31572011000400004
network_acronym_str EDITORA_34-1
network_name_str Revista de Economia Política
repository_id_str
spelling Exchange rate regulation, the behavior of exchange rates, and macroeconomic stability in BrazilBrazilian exchange rate regimecapital account liberalizationforeign exchange regulationIn the last two decades an entirely new set of rules governing the foreign exchange transactions was established in Brazil, substituting for the framework inherited from the 1930s. Foreign exchange controls were dismantled and a floating exchange rate regime replaced different forms of peg. In this paper we argue that although successful by comparison to previous experiences, the current arrangement has important flaws that should be addressed. We discuss how it first led to high volatility and extremely high interest rates, which, when overcome, gave way to a long lasting appreciation of the real exchange rate with adverse consequences to industry.Centro de Economia Política2011-12-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572011000400004Brazilian Journal of Political Economy v.31 n.4 2011reponame:Revista de Economia Políticainstname:EDITORA 34instacron:EDITORA_3410.1590/S0101-31572011000400004info:eu-repo/semantics/openAccessSouza,Francisco Eduardo Pires deCarvalho,Fernando J. Cardim deeng2012-02-28T00:00:00Zoai:scielo:S0101-31572011000400004Revistahttps://centrodeeconomiapolitica.org.br/repojs/index.php/journalONGhttps://centrodeeconomiapolitica.org.br/repojs/index.php/journal/oai||cecilia.heise@bjpe.org.br1809-45380101-3157opendoar:2012-02-28T00:00Revista de Economia Política - EDITORA 34false
dc.title.none.fl_str_mv Exchange rate regulation, the behavior of exchange rates, and macroeconomic stability in Brazil
title Exchange rate regulation, the behavior of exchange rates, and macroeconomic stability in Brazil
spellingShingle Exchange rate regulation, the behavior of exchange rates, and macroeconomic stability in Brazil
Souza,Francisco Eduardo Pires de
Brazilian exchange rate regime
capital account liberalization
foreign exchange regulation
title_short Exchange rate regulation, the behavior of exchange rates, and macroeconomic stability in Brazil
title_full Exchange rate regulation, the behavior of exchange rates, and macroeconomic stability in Brazil
title_fullStr Exchange rate regulation, the behavior of exchange rates, and macroeconomic stability in Brazil
title_full_unstemmed Exchange rate regulation, the behavior of exchange rates, and macroeconomic stability in Brazil
title_sort Exchange rate regulation, the behavior of exchange rates, and macroeconomic stability in Brazil
author Souza,Francisco Eduardo Pires de
author_facet Souza,Francisco Eduardo Pires de
Carvalho,Fernando J. Cardim de
author_role author
author2 Carvalho,Fernando J. Cardim de
author2_role author
dc.contributor.author.fl_str_mv Souza,Francisco Eduardo Pires de
Carvalho,Fernando J. Cardim de
dc.subject.por.fl_str_mv Brazilian exchange rate regime
capital account liberalization
foreign exchange regulation
topic Brazilian exchange rate regime
capital account liberalization
foreign exchange regulation
description In the last two decades an entirely new set of rules governing the foreign exchange transactions was established in Brazil, substituting for the framework inherited from the 1930s. Foreign exchange controls were dismantled and a floating exchange rate regime replaced different forms of peg. In this paper we argue that although successful by comparison to previous experiences, the current arrangement has important flaws that should be addressed. We discuss how it first led to high volatility and extremely high interest rates, which, when overcome, gave way to a long lasting appreciation of the real exchange rate with adverse consequences to industry.
publishDate 2011
dc.date.none.fl_str_mv 2011-12-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572011000400004
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572011000400004
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/S0101-31572011000400004
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Centro de Economia Política
publisher.none.fl_str_mv Centro de Economia Política
dc.source.none.fl_str_mv Brazilian Journal of Political Economy v.31 n.4 2011
reponame:Revista de Economia Política
instname:EDITORA 34
instacron:EDITORA_34
instname_str EDITORA 34
instacron_str EDITORA_34
institution EDITORA_34
reponame_str Revista de Economia Política
collection Revista de Economia Política
repository.name.fl_str_mv Revista de Economia Política - EDITORA 34
repository.mail.fl_str_mv ||cecilia.heise@bjpe.org.br
_version_ 1754122481055039488